Report: Illinois property law fails to end redlining impact

FILE - The Chicago skyline is reflected in the water of the thawed snow as a cyclist passes by at North Avenue Beach on March 1, 2021, in Chicago. According to a study, a nearly 80-year-old law intended to put distressed and tax-delinquent Chicago-area properties back to productive use has done little to improve or solve racial inequities in the city’s Black and Latino neighborhoods.

Treasurer Maria Pappas expects the study to be filed in the coming weeks with the county board and shared with the state Assembly and Gov. J.B. Pritzker. The now-defunct federal Home Owners’ Loan Corp. drew up “security maps” between 1935 and 1940 that graded the prospects — from best to worst — of mortgage lending in 239 cities across the United States. Areas deemed high lending risks were drawn in red and most often were majority Black neighborhoods.

Of the 27,358 houses and vacant lots offered at the county's 2022 Scavenger Sale, 14,085 fell within the boundaries of a security map of the Chicago area. Most of those 14,085 properties were redlined, the study's data shows. “You end up giving up because there is no easy route to success,” she said. “You’re exasperated, and for African Americans who are already discouraged by what's happened in their neighborhood it's doubly defeating. It becomes generationally defeating. There is nothing to pass on to the grandkids.”In Philadelphia, about 82% of 6,167 publicly available properties within the boundaries of that city’s federal lending map and held by the Philadelphia Housing Development Corp. were redlined.

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